When one of your employees gets sick, welcomes a new baby, or needs to care for an aging parent, their primary concern is often whether they can afford to take time off. Maryland’s Family and Medical Leave Insurance program, called FAMLI, is a state-administered paid leave system that requires participation from all Maryland employers. If the July 2025 contribution date left you with questions, then rest assured, you still have time, as the Maryland General Assembly formally delayed the program, and the actual deadlines are still ahead.
FAMLI Is Maryland’s New Paid Leave Safety Net
How the FAMLI Program Works
FAMLI operates like Social Security for paid time off. Employers and employees each contribute a percentage of wages into a shared state fund. When an employee takes qualifying leave, they draw income from that fund. The contribution cost is pooled across all Maryland employers, so no single employer’s cost changes based on how frequently their own employees file claims.
FAMLI vs FMLA
| FMLA | FAMLI |
Leave type | Unpaid | Paid |
Applies to | Employers with 50 or more workers | Every Maryland employer |
Who is covered | Employees at qualifying companies | All Maryland workers |
| Benefits available | Already in effect | January 3rd, 2028 |
If your business has fewer than 50 employees, your workers are covered by FAMLI but not FMLA. That’s a factual difference worth knowing as you review your current policies.
Who Qualifies and When
Employees become eligible for FAMLI after working at least 680 hours in Maryland across the four most recently completed calendar quarters. Once benefits open in January 2028, eligible workers can take up to 12 weeks of paid leave within a 12-month period for:
- An employee’s own serious health condition
- A family member who needs care during a serious health event
- Welcoming a new child through birth, adoption, or foster placement
- Qualifying military family situations
In certain circumstances, such as needing leave for a serious health condition and for bonding with a new child within the same year, eligible employees can qualify for up to 24 weeks total.
When benefits begin, the maximum weekly payment is $1,000, and the minimum is $50. Employees can take leave continuously or intermittently in blocks of four hours or more.
The Real FAMLI Deadline
What Happened in July 2025
July 2025 was the original FAMLI contribution start date, and it passed without any payroll changes required. The Maryland General Assembly formally voted to delay the program, and Governor Wes Moore signed the delay into law on May 6, 2025, through House Bill 102. The new timeline pushed contributions back by 18 months.
The Confirmed Dates
The current, official schedule from the Maryland Department of Labor is below.
Deadline | What Happens | Who It Affects |
July 2027 | Employee notification requirement begins | All Maryland employers |
September 1 – November 15, 2026The | Declaration of Intent window opens for employers electing a private plan | Employers pursuing a private plan |
January 1, 2027 | Payroll contributions begin | All Maryland employers |
April 30, 2027 | First quarterly payment due to the state | All Maryland employers |
January 3, 2028 | Employees can begin taking paid FAMLI leave | All eligible employees |
General employer registration opens separately this fall for all Maryland employers, regardless of which plan they choose.
Once you register, you’re automatically enrolled in the State Plan. Employers who prefer a private plan must submit a Declaration of Intent during the registration window, then continue collecting and holding the standard contribution in escrow throughout 2027 while their private plan application is reviewed. The State Plan is the default, and where most employers will land.
Note that the Maryland General Assembly may make additional adjustments to the program before contributions begin, so monitoring updates from the Maryland Department of Labor through the fall is part of the preparation process.
Breakdown of the Cost of FAMLI
How the Contribution Rate Splits
In April 2026, the Maryland Department of Labor reaffirmed the FAMLI contribution rate at 0.9% of wages for 2027, giving employers a confirmed number to build their payroll planning around. This rate applies only to wages paid between January 1, 2027, and December 31, 2027. The Maryland Department of Labor will announce an updated rate for 2028 in November 2027, capped by statute at 1.2%.
The total rate is 0.9%, but what you actually owe depends on your headcount.
Company Size | Total Rate | Your Employer Share | Employee Share | Your Direct Cost |
15 or more employees | 0.9% of wages | 0.45% | Up to 0.45% (withheld from paychecks) | 0.45% of payroll |
Fewer than 15 employees | 0.45% of wages | $0 | 0.45% (withheld from paychecks) | $0 |
What That Looks Like in Dollars
An employee earning $50,000 a year at a business with 15 or more employees generates a total FAMLI contribution of $450 for the year, split evenly at $225 each between employer and employee, or about $8.65 per biweekly paycheck per side, roughly the cost of a streaming subscription.
For businesses with fewer than 15 workers, the total contribution drops to $225 for the year, or about $8.65 per biweekly paycheck, and it comes entirely out of the employee’s paycheck. The employer absorbs nothing.
Your costs under the State Plan don’t change based on how frequently your employees take leave. Contributions are pooled across all Maryland employers, and the annual rate is set based on the program’s overall financial picture rather than your individual claims history.
How FAMLI Relates to What You Already Offer
Running Alongside FMLA
FAMLI doesn’t replace FMLA but runs alongside it. When an employee’s situation qualifies for both, the two programs operate at the same time, which means employers can count the leave toward the employee’s FMLA entitlement. One qualifying event doesn’t create two separate leave allotments.
Coordinating with Short-Term Disability
If your business already carries Short Term Disability coverage, some employees may be able to draw from both programs during the same leave event, depending on how your disability plan is structured. Reviewing your plan documents now, while there’s still time to make adjustments, is the right move before your employees find themselves in a situation where both apply.
If You Don’t Offer Income Protection?
No Short Term Disability plan? Beginning in 2028, FAMLI will provide an income source for employees during qualifying leave events. For businesses with fewer than 15 employees, that coverage comes at no direct employer cost. Understanding how FAMLI fits your current benefits picture is part of the planning work ahead.
Your FAMLI Pre-Registration Checklist
Before registration opens in September, four things should already be in motion:
- Distribute the required FAMLI employee notice. Notification requirements begin in July 2027 and are also required at hire, annually, within five business days of any qualifying leave request, and one payroll period before contributions begin in January 2027.
- Confirm with your payroll provider that your platform can calculate, withhold, and report FAMLI contributions before January 1, 2027.
- Review your existing leave policies, including paid time off, FMLA coverage, and any Short Term Disability plan, to understand how they interact with FAMLI.
- Register at paidleave.maryland.gov using your federal Employer Identification Number once general registration opens this fall. If you’re pursuing a private plan, you’ll also need to submit a Declaration of Intent between September 1 and November 15, 2026.
FAMLI layers on top of existing policies rather than replacing them. Understanding how they interact before registration opens puts you in the right position to make informed decisions.
Getting Ready Doesn’t Have to Be a Scramble
The FAMLI timeline gives Maryland employers defined deadlines to work against. Registration opens this September, and the decisions you make during that window will shape your approach through 2027 and into 2028 when benefits go live.
Mark Stoner has been partnering with Maryland businesses on their employee benefits since 2001. If you want to talk through what FAMLI means for your specific team size, what the contribution math looks like for your payroll, or how your current benefits package fits into the picture, that’s exactly the kind of conversation he’s here for. Together, we can make sure you’re walking into 2027 with the right plan in place.